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Saving for a Down Payment

You finally may have found your dream home after days and months of searching, at a time when mortgage rates are low. However, you don't have enough money for a down payment or full payment. For individuals with lower incomes, saving money for a down payment can be difficult. You don't have to let your dream of owning your own home disappear. Working towards getting cash ready for a down payment is beneficial. Knowing smart ways to save money for a down payment is crucial. Saving money is important whether you want to save for a down payment on your home, to buy a car, take a vacation, or save for your retirement. Here you will get more information on what you didn’t know about saving for a down payment. https://www.drewmortgage.com/how-to-save-for-down-payment/

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Saving for a Down Payment

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  1. Introduction ● After a long search, you've finally found the home you've been looking for and at a time when mortgage rates are low. However, you don't have enough money for the down payment or the full payment. ● Saving money for a down payment can be tough for people on a lower income. ● Working towards getting cash ready for a down payment will help you reach the goal of attaining your dream home. ● Whether you want to make a down payment on a home, buy a car, take a vacation, or save for your retirement, these tips can help. 2

  2. Ways to save money for a down payment: 1. Clear Your Credit Cards ● When you owe money on your credit cards, the compounding interest charges make it difficult to clear that debt. Slash your debt load and keep that cash for yourself. List your debts, then pay off the balance on the card with the highest interest rate first. Once that’s cleared, focus on the card with the second highest rate. This way, you’ll clear your card balances. It's known as an “avalanche” method of clearing debt. By clearing those credit card bills, you can save some money instead. ● ● ● ● ● ● 3

  3. 2. Leverage Special Programs ● ● ● ● Many first-time home buyers struggle to save for a down payment. If you're one of those, there are several programs in the market that can assist you. Some government-sponsored agencies buy mortgages and package them as investments. Also, some non-profit and community groups can support buyers who are trying hard to save money for a home. Moreover, there are also state agencies that can help. ● 4

  4. 3. Tap Your IRA ● ● ● Tax laws will allow you to withdraw some money from your IRA funds. If you're married, then you can withdraw from your retirement account, meaning a solid down payment. Under the tax rules, you qualify if you haven't owned a principal residence during the three years prior to buying the new home. Under these circumstances, the penalty for early withdrawal is waived, but you may owe tax on the money, depending on the type of IRA. ● 5

  5. 4. Get a Financial Gift ● ● ● If you’re owed money, now’s the time to collect on it. If you have a family member or friend that is in a position to help, it doesn’t hurt to ask. You can use gifted money as a down payment on your home. 6

  6. 5. Save More from Work ● ● ● When your salary is raised, save that increase in a separate savings account. It seems like a small amount, but it'll soon add up. Save bonuses, extra sales incentives, or tax refunds in this separate savings account. 7

  7. 6. Get Rid of Your Extras ● If you and your spouse both have a car, sell one, share the other, and get rid of one car payment installment every month, as well as maintenance and insurance costs. ● You could save thousands of dollars per year this way. 8

  8. ● First-time home buyers, particularly those on a lower income, often find it difficult to save money for a down payment on their dream home. Buying a home is probably the biggest investment you'll make in your lifetime and it’s not always easy to save. If you’re looking to purchase a home in the future, now is the time to start saving for a down payment. ● Drew Mortgage Associates, Inc., the best mortgage lender in MA can help you with mortgage loans at a lower interest rate. We can help eligible individuals with mortgage loans that may not require any down payment. Read More : https://www.drewmortgage.com/how-to-save-for-down-payment/ 9

  9. DREW MORTGAGE BRANCH OFFICES: Drew Mortgage Associates 196 Boston Turnpike Road Shrewsbury, MA 01545 Phone: 508-753-1656 Website: https://www.drewmortgage.com/ Peabody Mortgage Lenders 1 Mt Pleasant Drive Peabody, MA 01960 Phone: (978) 750-1080 Boston Mortgage Lenders 232 Commercial St Boston, MA 02109 Phone: (617) 523-3060 10

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